<PAGE>
SEMI-ANNUAL REPORT
.SEPARATE ACCOUNT A OFPACIFIC MUTUAL LIFE INSURANCE COMPANY
[LOGO OF SEPARATE ACCOUNT A]
<PAGE>
EXHIBIT C
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
HIGH
MONEY YIELD MANAGED GOVERNMENT AGGRESSIVE GROWTH
MARKET BOND BOND SECURITIES EQUITY LT
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Money Market Portfolio (326 shares; cost $3,270)...... $3,267
High Yield Bond Portfolio (205 shares; cost $1,973)... $1,955
Managed Bond Portfolio (132 shares; cost $1,380)...... $1,389
Government Securities Portfolio (75 shares; cost
$762)................................................ $768
Aggressive Equity Portfolio (40 shares; cost $427).... $419
Growth LT Portfolio (93 shares; cost $1,481).......... $1,458
Receivables:
Due from Pacific Mutual Life Insurance Company........ 170 32 17 27
Fund shares redeemed.................................. 38
------ ------ ------ ---- ---- ------
TOTAL ASSETS............................................ 3,305 2,125 1,421 768 436 1,485
------ ------ ------ ---- ---- ------
LIABILITIES
Payables:
Due to Pacific Mutual Life Insurance Company.......... 38
Fund shares purchased................................. 170 32 17 27
------ ------ ------ ---- ---- ------
TOTAL LIABILITIES....................................... 38 170 32 17 27
------ ------ ------ ---- ---- ------
NET ASSETS.............................................. $3,267 $1,955 $1,389 $768 $419 $1,458
====== ====== ====== ==== ==== ======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
C-1
<PAGE>
EXHIBIT C
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS & LIABILITIES (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
EQUITY MULTI- BOND & EQUITY EMERGINING
INCOME STRATEGY EQUITY INCOME INDEX INTER- MARKETS
VARIABLE VARIABL VARIABLE VARIABLE VARIABLE NATIONAL VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
------- ------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in Pacific Select Fund:
Equity Income Portfolio (69 shares; cost $1,283)....... $1,267
Multi-Strategy Portfolio (33 shares; cost $450)........ $451
Equity Portfolio (35 shares; cost $711)................ $723
Bond and Income Portfolio (32 shares; cost $367)....... $367
Equity Index Portfolio (52 shares; cost $946).......... $955
International Portfolio (280 shares; cost $3,831)...... $3,966
Emerging Markets Portfolio (20 shares; cost $201)...... $202
Receivables:
Due from Pacific Mutual Life Insurance Company......... 29 16 5 39 30 17
------ ---- ---- ---- ---- ------ ----
TOTAL ASSETS............................................. 1,296 451 739 372 994 3,996 219
------ ---- ---- ---- ---- ------ ----
LIABILITIES
Payables:
Fund shares purchased.................................. 29 16 5 39 30 17
------ ---- ---- ---- ---- ------ ----
TOTAL LIABILITIES........................................ 29 16 5 39 30 17
------ ---- ---- ---- ---- ------ ----
NET ASSETS............................................... $1,267 $451 $723 $367 $955 $3,966 $202
====== ==== ==== ==== ==== ====== ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
C-2
<PAGE>
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
HIGH
MONEY YIELD MANAGED GOVERNMENT AGGRESSIVE GROWTH
MARKET BOND BOND SECURITIES EQUITY LT
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
-------- -------- -------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends.......................................... $18 $ 28 $ 9 $ 5 $ 1
EXPENSES
Mortality and expense risk fee..................... 4 3 2 1 $ 1 2
--- ---- --- --- ---- ----
NET INVESTMENT INCOME (LOSS)........................ 14 25 7 4 (1) (1)
--- ---- --- --- ---- ----
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss from security transactions....... (1) (3) (2) (2) (3) (1)
Net unrealized appreciation (depreciation)
on investments.................................... (3) (18) 9 6 (7) (24)
--- ---- --- --- ---- ----
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS..................................... (4) (21) 7 4 (10) (25)
--- ---- --- --- ---- ----
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.......................... $10 $ 4 $14 $ 8 $(11) $(26)
=== ==== === === ==== ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
C-3
<PAGE>
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
EQUITY MULTI- BOND & EQUITY INTER- EMERGING
INCOME STRATEGY EQUITY INCOME INDEX NATIONAL MARKETS
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
-------- -------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends....................................... $ 4 $ 1 $3 $ 4 $ 27
EXPENSES
Mortality and expense risk fee.................. 2 1 $ 1 1 11
Administrative fee.............................. 1
---- --- --- -- --- ----
Total expenses............................... 2 1 1 1 12
---- --- --- -- --- ----
NET INVESTMENT INCOME (LOSS)..................... 2 0 (1) 3 3 15
---- --- --- -- --- ----
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss from security transactions... (2) (1) (2)
Net unrealized appreciation (depreciation)
on investments................................. (16) 1 12 8 134 $1
---- --- --- -- --- ---- --
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. (18) 0 12 6 134 1
---- --- --- -- --- ---- --
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS....................... $(16) $ 0 $11 $3 $ 9 $149 $1
==== === === == === ==== ==
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
C-4
<PAGE>
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
HIGH
MONEY YIELD MANAGED GOVERNMENT AGGRESSIVE GROWTH
MARKET BOND BOND SECURITIES EQUITY LT
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
-------- ------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss)..................... $ 14 $ 25 $ 7 $ 4 $ (1) $ (1)
Net realized loss from security transactions..... (1) (3) (2) (2) (3) (1)
Net unrealized appreciation (depreciation)
on investments.................................. (3) (18) 9 6 (7) (24)
------- ------ ------ ---- ---- ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........................ 10 4 14 8 (11) (26)
------- ------ ------ ---- ---- ------
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums......................... 4,914 729 1,053 651 390 1,322
Transfers in (from other variable accounts)...... 329 1,368 380 196 46 314
Transfers out (to other variable accounts)....... (1,987) (41) (59) (87) (8) (158)
Transfers--other................................. 1 (105) 1 2 6
------- ------ ------ ---- ---- ------
NET INCREASE IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS................. 3,257 1,951 1,375 760 430 1,484
------- ------ ------ ---- ---- ------
NET INCREASE IN NET ASSETS........................ 3,267 1,955 1,389 768 419 1,458
NET ASSETS
Beginning of period..............................
------- ------ ------ ---- ---- ------
End of period.................................... $ 3,267 $1,955 $1,389 $768 $419 $1,458
======= ====== ====== ==== ==== ======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
C-5
<PAGE>
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1996 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
EQUITY MULTI- BOND & EQUITY INTER- EMERGING
INCOME STRATEGY EQUITY INCOME INDEX NATIONAL MARKETS
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
-------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss)................... $ 2 $ (1) $ 3 $ 3 $ 15
Net realized loss from security
transactions.................................. (2) $ (1) (2)
Net unrealized appreciation
(depreciation) on investments................. (16) 1 12 8 134 $ 1
------ ---- ---- ---- ---- ------ ----
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS...................... (16) 0 11 3 9 149 1
------ ---- ---- ---- ---- ------ ----
INCREASE (DECREASE) IN NET ASSETS FROM
POLICY TRANSACTIONS
Transfer of net premiums....................... 1,278 354 500 331 844 3,652 $191
Transfers in (from other variable accounts).... 116 133 209 35 133 173 31
Transfers out (to other variable accounts)..... (111) (36) (2) (33) (7) (21)
Transfers--other............................... 3 2 (1)
------ ---- ---- ---- ---- ------ ----
NET INCREASE IN NET ASSETS
DERIVED FROM POLICY TRANSACTIONS............... 1,283 451 712 364 946 3,817 201
------ ---- ---- ---- ---- ------ ----
NET INCREASE IN NET ASSETS...................... 1,267 451 723 367 955 3,966 202
NET ASSETS
Beginning of period............................
------ ---- ---- ---- ---- ------ ----
End of period.................................. $1,267 $451 $723 $367 $955 $3,966 $202
====== ==== ==== ==== ==== ====== ====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
C-6
<PAGE>
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Separate Account A (the "Separate Account") is registered as a unit
investment trust under the Investment Company Act of 1940, as amended, and is
currently comprised of thirteen subaccounts called Variable Accounts: the Money
Market Variable Account, the High Yield Bond Variable Account, the Managed Bond
Variable Account, the Government Securities Variable Account, the Aggressive
Equity Variable Account (Note 5), the Growth LT Variable Account, the Equity
Income Variable Account, the Multi-Strategy Variable Account, the Equity
Variable Account, the Bond and Income Variable Account, the Equity Index
Variable Account, the International Variable Account, and the Emerging Markets
Variable Account (Note 5). The assets in each Variable Account are invested in
shares of the corresponding portfolios of Pacific Select Fund (the "Fund"), each
of which pursues different investment objectives and policies.
The Separate Account was established by Pacific Mutual Life Insurance
Company ("Pacific Mutual") on September 7, 1994 and commenced operations on
January 2, 1996. Under applicable insurance law, the assets and liabilities of
the Separate Account are clearly identified and distinguished from the other
assets and liabilities of Pacific Mutual. The assets of the Separate Account
will not be charged with any liabilities arising out of any other business
conducted by Pacific Mutual, but the obligations of the Separate Account,
including benefits related to variable annuities, are obligations of Pacific
Mutual.
The Separate Account held by Pacific Mutual represents funds from
individual flexible premium variable accumulation deferred annuity contracts
(the "Contracts").
The preparation of the accompanying financial statements requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual results could
differ from those estimates.
A. Valuation of Investments
Investments in shares of the Fund are valued at the reported net asset
values of the respective portfolios.
B. Security Transactions
Transactions are recorded on the trade date. Realized gains and losses on
sales of investments are determined on the basis of identified cost.
C. Federal Income Taxes
The operations of the Separate Account will be reported on the Federal
income tax return of Pacific Mutual, which is taxed as a life insurance company
under the provisions of the Tax Reform Act of 1986. Under current tax law, no
Federal income taxes are expected to be paid by Pacific Mutual with respect to
the operations of the Separate Account.
2. DIVIDENDS
During 1996, the Fund has declared dividends for each portfolio. The
amounts accrued by the Separate Account for its share of the dividends were
reinvested in additional full and fractional shares of the related portfolio.
3. CHARGES AND EXPENSES
Pacific Mutual charges the Separate Account daily for mortality and
expense risks assumed and administrative costs incurred in operating the
Separate Account and issuing and administering the Contracts at an annual rate
of 1.25% and 0.15%, respectively, of the average daily net assets of each
Variable Account. Under the contracts, Pacific Mutual makes certain deductions
from the net assets of each Variable Account for contract maintenance, any state
premium taxes, and any surrender charges. The operating expenses of the
Separate Account are paid by Pacific Mutual.
4. RELATED PARTY AGREEMENT
Pacific Mutual Distributors, Inc. (formerly known as Pacific Equities
Network), a wholly-owned subsidiary of Pacific Mutual, is the principal
underwriter of variable annuity contracts funded by interests in the Separate
Account, and is compensated by Pacific Mutual.
C-7
<PAGE>
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
5. AGGRESSIVE EQUITY VARIABLE ACCOUNT AND EMERGING MARKETS VARIABLE ACCOUNT
The separate account has organized and registered with the Securities and
Exchange Commission two new Variable Accounts, the Aggressive Equity Variable
Account and the Emerging Markets Variable Account. Both Variable Accounts
commenced operations on April 17, 1996.
6. SELECTED ACCUMULATION UNIT** INFORMATION
Selected accumulation unit information for the period ended June 30, 1996
were as follows:
<TABLE>
<CAPTION>
HIGH
MONEY YIELD MANAGED GOVERNMENT AGGRESSIVE GROWTH EQUITY
MARKET BOND BOND SECURITIES EQUITY LT INCOME
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
-------- -------- -------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT
VALUE:
Beginning $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
======== ======== ======== ======= ======= ======== ========
Ending $ 10.17 $ 10.15 $ 9.79 $ 9.72 $ 10.52 $ 11.09 $ 10.52
======== ======== ======== ======= ======= ======== ========
Number of Units Outstanding at
End of Period 321,170 192,686 141,926 79,031 39,867 131,480 120,483
<CAPTION>
MULTI- BOND & EQUITY INTER- EMERGING
STRATEGY EQUITY INCOME INDEX NATIONAL MARKETS
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT
-------- -------- -------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT
VALUE:
Beginning $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
======= ======= ======= ======= ======== =======
Ending $ 10.20 $ 12.27 $ 9.21 $ 10.81 $ 10.81 $ 10.15
======= ======= ======= ======= ======== =======
Number of Units Outstanding at
End of Period 44,191 58,940 39,838 88,293 366,863 19,924
</TABLE>
- ------------------
** Accumulation Unit: unit of measure used to calculate the value of a
Contract Owner's interest in a Variable Account during the Accumulation Period.
C-8
